Regulatory Compliance & Legal Framework Flashcards

Which of the following best describes the legal concept of 'duty of care' as it applies to a leadership coach?

Answer: The standard of reasonable care a coach must exercise to avoid causing foreseeable harm to clients

Duty of care requires coaches to act with reasonable prudence and professionalism to prevent foreseeable harm, forming the basis of negligence claims if breached.

A 'force majeure' clause in a coaching contract is designed to:

Answer: Excuse performance obligations when extraordinary events beyond either party's control occur

Force majeure clauses relieve parties of contractual obligations when unforeseeable events—such as natural disasters or pandemics—make performance impossible.

Under US tax law, an independent contractor coach must file a Schedule C primarily to:

Answer: Report self-employment income and deductible business expenses to the IRS

Schedule C (Profit or Loss from Business) is used by sole proprietors and independent contractors to report business income and expenses on their federal tax return.

A client signs a coaching agreement but later argues they didn't understand the confidentiality limitations. The coach's best protection is having:

Answer: Written informed consent with a clear explanation of confidentiality scope and exceptions, signed by the client

A signed written informed consent document creates a legal record that the client was informed of and agreed to the confidentiality terms, including any exceptions.

The Children's Online Privacy Protection Act (COPPA) would be most relevant to a leadership coach who:

Answer: Operates a coaching website or online platform that might collect data from users under 13

COPPA regulates the online collection of personal information from children under 13, which becomes relevant if a coach's digital platform could be accessed by minors.

When a coaching client is also an employee of a corporate sponsor, the sponsor's right to know about coaching progress is best governed by:

Answer: A tripartite agreement that explicitly defines what information, if any, is shared with the sponsor and in what form

A tripartite agreement explicitly negotiated among all three parties is the appropriate mechanism for defining the sponsor's access rights and the limits of confidentiality.

Which of the following represents a legally problematic 'guarantee' a leadership coach should avoid making in marketing materials?

Answer: 'We guarantee you will be promoted within six months of completing our program'

Guaranteeing specific outcomes like promotion creates potential liability for misrepresentation or fraud if the outcome is not achieved, as coaching results depend on many factors outside the coach's control.